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REPORT: Europe Wants To Get Rid Of The Most Controversial Part Of The Cyprus Bailout

Matthew Boesler   

REPORT: Europe Wants To Get Rid Of The Most Controversial Part Of The Cyprus Bailout
Stock Market1 min read

Reuters' Eric Platt reports that the EU already wants to get rid of the most controversial part of the Cyprus bank bailout announced this weekend – the levy on uninsured depositors (those with account balances under 100,000 euros).

The decision to include small depositors in the haircuts has been one of the most contentious, almost universally panned aspects of the bailout.

According to earlier reports, it was Cyprus that wanted to include small depositors in the first place. Now, it seems as if the EU is set to take a more forceful line on this detail of the bailout.

If Cyprus decides to roll back that provision, it could soften the blow domestically and reverse some of the fears that depositors in other peripheral countries could be subjected to the same treatment in the future.

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